Tax Reform Will Support Illinois Families, Spur American Economy and Encourage Job Creation
Washington, DC —Today, U.S. Representative Randy Hultgren (R-IL-14) supported passage of H.R. 1, the Tax Cuts and Jobs Act. The legislation included Rep. Hultgren’s bill H.R. 1425, the Bring Small Businesses Back Tax Reform Act, which cuts the overall small business tax rate to 25 percent. Some Illinois companies are paying up to 40 percent in federal taxes.
“For too long our complex tax code has confused American individuals and families, nickel-and-dimed small businesses and obstructed job creation and economic growth. It has kept our businesses from growing and adding more workers. This bill provides tax cuts for the middle class, low-income Americans and U.S. businesses of all sizes—from home builders, to contractors, to farmers and small businesses in Illinois,” said Rep. Hultgren. “Comprehensive tax reform is long overdue, and this bill provides significant relief to people in Illinois and across the country. Every time I meet with family-owned businesses and ask them what it would take to hire one more employee, they unanimously state fixing the tax code, among other issues. I am especially pleased the legislation includes my bill, the Bring Small Businesses Back Tax Reform Act, to cut the overall small business tax rate to 25 percent and provide much-needed relief to the engine of Illinois’ economy. I look forward to working with my colleagues in the U.S. Senate to finalize a plan that includes municipal finance tax protections that preserve a key tax tool for funding local and state infrastructure projects like hospitals, roads and bridges. Our goal is a tax code that benefits and works for families, seniors, workers and job creators in the 14th District.”
For individuals and families, the Tax Cuts and Jobs Act:
- Lowers individual tax rates for low- and middle-income Americans to Zero, 12%, 25% and 35% so people keep more of what they earn, and continues to maintain 39.6% for high-income Americans.
- Significantly increases the standard deduction to protect roughly double the amount of what you earn each year from taxes – from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples.
- Eliminates special-interest deductions that increase rates and complicate Americans’ taxes – so an individual or family can file their taxes on a form as simple as a postcard.
- Takes action to support more American families by:
- Establishing a new Family Credit – which includes expanding the Child Tax Credit from $1,000 to $1,600 to help parents with the cost of raising children, and providing a credit of $300 for each parent and non-child dependent to help all families with their everyday expenses.
- Preserving the Child and Dependent Care Tax Credit to help families care for their children and older dependents such as a disabled grandparent who may need additional support.
- Preserving the Adoption Tax Credit so parents can continue to receive additional tax relief as they open their hearts and their homes to an adopted child.
- Maintains the Earned Income Tax Credit to provide important tax relief for low-income Americans working to build better lives for themselves.
- Streamlines higher education benefits to help families save for and better afford college tuition and other education expenses.
- Continues the deduction for charitable contributions so people can continue to donate to their local church, charity or community organization.
- Preserves the home mortgage interest deduction for existing mortgages and maintains it for newly purchased homes up to $500,000, providing relief to current and aspiring homeowners.
- Continues to allow people to write off the cost of state and local property taxes up to $10,000.
- Retains popular retirement savings options such as 401(k)s and Individual Retirement Accounts so Americans can continue to save for their future.
- Repeals the Alternative Minimum Tax so millions of individuals and families will no longer have to worry about calculating their taxes twice each year and pay the higher amount.
- Provides immediate relief from the Death Tax by doubling the exemption and repealing the Death Tax after six years. Family-owned farms and businesses will no longer have to worry about double or triple taxation from Washington when they pass down their life’s work to the next generation.
For job creators of all sizes, the Tax Cuts and Jobs Act:
- Lowers the corporate tax rate to 20% – down from 35%, which today is the highest in the industrialized world – the largest reduction in the U.S. corporate tax rate in our nation’s history.
- Reduces the tax rate on the hard-earned business income of Main Street job creators to no more than 25% – the lowest tax rate on small business income since World War II.
- Provides a new, low tax rate of 9% for businesses earning less than $75,000 in income to help the Main Street startups who fuel innovation and job creation in communities across the country
- Establishes strong safeguards to distinguish between individual wage income and “pass-through” business income so Main Street tax relief goes to the local job creators it was designed to help most.
- Allows businesses to immediately write off the full cost of new equipment to improve operations and enhance the skills of their workers – unleashing the growth of jobs, productivity and paychecks.
- Protects the ability of small businesses to write off the interest on loans that help these Main Street entrepreneurs start or expand a business, hire workers and increase paychecks.
- Retains the low-income housing tax credit that encourages businesses to invest in affordable housing so families, individuals and seniors can find a safe and comfortable place to call home.
- Preserves the Research & Development Tax Credit – encouraging our businesses and workers to develop cutting-edge “Made in America” products and services.
- Strengthens accountability rules for tax-exempt organizations to ensure that churches, charities, foundations and other organizations are focused on helping people and communities in need.
- Modernizes our international tax system so America’s global businesses will no longer be held back by an outdated “worldwide” tax system that results in double taxation for many of our nation’s job creators.
- Makes it easier for American businesses to bring home foreign earnings to invest in growing jobs and paychecks in our local communities.
- Prevents American jobs, headquarters and research from moving overseas by eliminating incentives that now reward companies for shifting jobs, profits and manufacturing plants abroad.
- American Forest & Paper Association
- Associated Builders and Contractors
- Association of Equipment Manufacturers (AEM)
- Faith & Freedom Coalition
- Family Research Council
- Illinois Farm Bureau
- Independent Community Bankers of America (ICBA)
- National Association of Manufacturers
- National Federation of Independent Business (NFIB)
- National Retail Federation
- National Taxpayers Union
- U.S. Chamber of Commerce